The U.S. Supreme Court ruled in favor of Havana Docks Corporation, awarding it $440 million in a lawsuit against major cruise operators, including Carnival Corporation, Royal Caribbean Group, Norwegian Cruise Line Holdings, and MSC Cruises. The ruling confirmed that the cruise lines utilized the port facilities owned by Havana Docks without authorization, dating back to their operations in Cuba from 2016 to 2019.
The court established that the cruise lines had effectively trafficked in confiscated property, as the Cuban government seized the docks after the revolution that began in 1959. Under the Helms-Burton Act, U.S. nationals can sue entities that exploit property taken by the Cuban government. The court found that the cruise companies knowingly benefited from the facilities, which had previously been built by Havana Docks.
Initially, a federal district court favored Havana Docks, ordering each cruise line to pay over $100 million. However, this decision was later reversed by the Eleventh Circuit, which argued that because Havana Docks’ concession would have ended in 2004, the cruise lines could not be held liable for using a non-existent right. The Supreme Court disagreed with this assessment, concluding that the docks themselves constituted the confiscated property, thus affirming that commercial use of these docks incurs liability.
Justice Kagan provided a dissenting opinion, contending that the majority ruling transformed a limited-time lease into a perpetual property right, potentially resulting in extensive recoveries in similar cases. The case will now return to the Eleventh Circuit for further proceedings.
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